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Suppose You Have an Opportunity to Invest in a Project

Question 41

Multiple Choice

Suppose you have an opportunity to invest in a project, which is expected to generate $6,800 in year 1, $7,200 in year 2, and $7,500 in year 3.The appropriate risk-adjusted discount rate for the project is 10.5%.What is project's initial investment when the project's NPV is $2,609.25? Ignore income taxes for this question.


A) $15,000
B) $17,609
C) $20,218
D) $21,500

Correct Answer:

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